Iraq Oil and Gas Market by Application, Type and Deployment - Forecast and Analysis 2024-2028

Iraq Oil and Gas Market Forecast 2024-2028

The Iraq oil and gas market size is forecast to increase by USD 69.22 billion, at a CAGR of 2.35% between 2023 and 2028. The growth rate of the market depends on several factors, such as increasing focus on oil production capacity expansion in Iraq, rise in support for the market from the Iraqi government, and increasing consumption of natural gas by industries in Iraq. Our report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.

Abu Dhabi National Energy Company PJSC provides approximately 50,000 barrels per day, while Arajeez Company LLC offers a range of services in the allied sector, including inspection, calibration, training, construction, heat treatment, quality management certification, accreditation, empowering, cleaning, and pits control.

Market Forecasting and Size

Market  Forecast 2024-2028

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Market Dynamic

Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Driver - Increasing focus on oil production capacity expansion in Iraq

This region has been working to expand its production capacity through the development of new oil fields and the upgrade of existing infrastructure. Increased production contributes to the country's export revenues and strengthens Iraq's position at the global level. This region has been focusing on the exploration and development of new oil fields to increase production capacity. This region has been investing in infrastructure projects to support increased production and export capabilities. This includes the construction of new pipelines, storage facilities, export terminals, and refineries to improve the transportation and processing of crude oil. The government of this region has prioritized upstream investments in exploration, drilling, and production activities to expand production capacity.

For instance, in October 2023, Iraq announced the rebuilding and expansion of the destroyed Baiji oil refinery by mid-2024. Iraq's efforts to expand its production capacity are driven by the desire to capitalize on its abundant oil reserves, increase export revenues, and stimulate economic growth, which may fuel the market during the forecast period.

Trends - Increasing oil and gas investments by foreign investors in Iraq

Iraq has been actively seeking foreign investments in its industry through partnerships with international oil companies (IOCs). These partnerships often involve technical expertise, capital investment, and knowledge transfer to enhance Iraq's oil and gas infrastructure and production capabilities. Increased investment can lead to higher production levels and exports, generating foreign exchange earnings for the country. This can strengthen Iraq's position and contribute to an improved balance of trade. Some of the recent investments in the oil and gas market in Iraq are:

For instance, in December 2023, UAE's Crescent Petroleum announced that it would invest up to USD 1 billion in Iraq as part of a deal it struck with the Iraqi government in early 2023. Crescent Petroleum and Iraq concluded a 20-year agreement in February 2023 to develop four oil and gas projects in Basra and Diyala. Thus, increasing investments by international companies may boost growth during the forecast period.

Challenge - Political instability and security issues leading to supply chain disruptions in oil and gas industry

Geopolitical tensions, political instability, wars, and pandemics disrupt the supply chain for oil and gas. This can lead to production delays, increased costs, and challenges in maintaining consistent production and supply of these products. The market in the region is influenced by geopolitical dynamics, including regional factors, such as political instability and security threats, which impact investment decisions, prices, and stability, creating additional challenges for such companies operating in the country. Terrorist threats in the region pose significant security risks to the country's infrastructure.

Moreover, international trade disputes, sanctions, and geopolitical tensions can affect Iraq's ability to export oil and gas and obtain access to critical inputs and equipment needed for such industry. Restricted trade routes and port operations or sudden freezing of assets and transactions can disrupt the supply chain, leading to delays and increased costs for these companies. Thus, supply chain disruptions due to the political instability and security threats in the country in the past decade may hamper the market during the forecast period.

Market Segmentation by Application, Type, and Deployment

Application Segment Analysis: 

The industrial segment is estimated to witness significant growth during the forecast period. These are essential for meeting the region's domestic energy needs, including electricity generation, transportation, and industrial processes. The country relies heavily on these resources to power its economy and support its growing population. It serves as a major feedstock in various industries, including petrochemicals, fertilizers, plastics, and pharmaceuticals.

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The industrial segment was the largest and was valued at USD 257.48 billion in 2018. The industrial sector in Iraq depends on manufacturing processes and product development. With increasing urbanization and industrialization, there is a continuous need to expand electricity generation capacity in this region oil and gas-fired power plants play a crucial role in meeting this demand, especially during peak demand and consumption periods. It serves as a primary feedstock for the production of petrochemicals, which are used to manufacture a wide range of products, including plastics, fertilizers, solvents, synthetic fibers, and pharmaceuticals. The petrochemical industry relies heavily on derivatives as raw materials, driving demand for these resources. Rapid industrial growth drives higher energy consumption in manufacturing, construction, and infrastructure development activities. As industrialization continues to expand in the region, the demand in the industrial sector is expected to increase in the region, which, in turn, will have a positive impact on the market during the forecast period.

Type Analysis

Based on the type, the market has been segmented into upstream, downstream, and midstream. The upstream segment will account for the largest share of this segment.? The region has vast untapped reserves, particularly in the southern part of the country. Increasing the exploration efforts, including seismic surveys and drilling campaigns, can help identify new reserves and expand production capacity. Upstream oil and gas refers to the initial stages of these industry operations, including exploration, drilling, and production activities. It involves locating potential reservoirs, drilling wells, and extracting crude oil and natural gas from underground formations. As countries like Iraq seek to expand their oil and gas production, there is a need for upstream oil and gas infrastructure development, driving demand for upstream services and equipment. Overall, the combination of the increasing demand for energy, technological advancements, investment opportunities, geopolitical considerations, and the need for infrastructure development contributes to the high demand for upstream oil and gas operations in Iraq, which, in turn, will have a positive impact on the growth of the market during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

BP Plc - The company offers oil and gas, which helps to meet the world's growing energy consumption. and it can help to fund the transition to lower carbon energy as well.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Abu Dhabi National Energy Company PJSC, Arajeez Company LLC, BP Plc, Caterpillar Inc., China National Offshore Oil Corp., DNO ASA, Independent Oil Tools Iraq, Iraq Basra Oil and Gas, ISHTAR STAR, KMSK Iraq, PJSC LUKOIL, QatarEnergy, Ronahi Co., Shell plc, SPM Oil and Gas Iraq, Tekkon Petrochemical Services Co. Ltd., Wataniya Bitumen and Oil Refinery, and Exxon Mobil Corp. 

Technavio forecasts an in-depth analysis of its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market analysis and report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028

• Application Outlook
  • Industrial
  • Commercial
  • Residential

• Type Outlook 
  • Upstream
  • Downstream
  • Midstream

• Deployment Outlook
  • Offshore
  • Onshore

Market Analyst Overview

The market in Iraq faces various challenges and opportunities. Environmental clearances and water scarcity impact operations, especially in the Basra region. The upstream sector undergoes technology modernization to enhance efficiency. Natural gas production plays a vital role in Iraq's energy mix, contributing to stability despite past geopolitical issues like the Islamic State threat. Political stability is crucial for the Iraqi state-owned SOMO to manage crude oil extraction successfully. The increase in natural gas production, especially from gas fields alongside conventional fields, signifies the nation's efforts to meet energy demands and ensure resilience in the global market. 

Market Scope
Report Coverage	Details
Page number	139
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 2.35%
Market Growth 2024-2028	USD 69.22 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	2.11
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Abu Dhabi National Energy Company PJSC, Arajeez Company LLC, BP Plc, Caterpillar Inc., China National Offshore Oil Corp., DNO ASA, Independent Oil Tools Iraq, Iraq Basra Oil and Gas, ISHTAR STAR, KMSK Iraq, PJSC LUKOIL, QatarEnergy, Ronahi Co., Shell plc, SPM Oil and Gas Iraq, Tekkon Petrochemical Services Co. Ltd., Wataniya Bitumen and Oil Refinery, and Exxon Mobil Corp.
Market dynamics	Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the oil and gas market in Iraq between 2024 and 2028
• Precise estimation of the growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across Iraq
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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